(PRESS RELEASE) OSLO, 15-Apr-2022 — /EuropaWire/ — Norsk Hydro ASA (OTCMKTS: NHYDY), a Norwegian aluminium and renewable energy company, has announced that Hydro REIN, a supplier of renewable power with strong pipeline of wind and solar projects in Brazil and the Nordics, along with Eolus (STO: EOLU-B), one of the leading players in renewable electricity generation in the Nordic region, will sell 75% of the shares in the 260 MW wind power project Stor-Skälsjön in Sweden to MEAG, the asset manager of Munich Re and ERGO.
The transaction covers 75% of the shares in the project company at an enterprise value of EUR 361.4 million (100% basis). Eolus is to sell all its shares amounting to 51% for a purchase price of EUR 18.4 million. Hydro REIN will sell 24% of the shares for a purchase price of EUR 8.7 million and will remain as co-owner of the project with a 25% interest. Eolus and Hydro REIN acquired the project, which is located in Sundsvall and Timrå municipalities in Sweden (SE2), from Enercon in June 2021.
“This agreement confirms our capacity to deliver high-quality facilities as well as competitive asset management services. There is great interest in renewable investments, and we have a large number of projects within wind, solar and energy storage in our portfolio, says Per Witalisson,” CEO of Eolus.
The wind farm will comprise of 42 Siemens Gamesa SG 6.6-170 wind turbines (turbine supply agreement communicated on December 30, 2021). Construction has started and commissioning is planned for autumn 2023.
“We welcome MEAG as a co-owner in the project and very much look forward to our partnership. This transaction enables us to optimize capital allocation and the return on our investment while retaining a significant stake in the project, consistent with our long-term ownership and portfolio strategy, says Olivier Girardot, Head of Hydro REIN.
Eolus and Hydro REIN will jointly construct the wind farm on behalf of the investors under a Construction Management Agreement (CMA). Revenues under the CMA are estimated to approximately EUR 42.3 million to be shared 51/49 between Eolus and Hydro REIN. As part of the agreement Eolus has also been entrusted to provide technical, operational and administrative services for the wind farm on a 15-year contract.
“We are pleased to announce a further wind power project acquisition with Eolus in Sweden. The investment expands our portfolio in renewable energy where MEAG is strongly engaged and contributes to a carbon-free energy supply in Europe. We are looking forward to the partnership with Eolus and Hydro REIN in this project,” says Holger Kerzel, MEAG Member of the Management Board and Global Head of Illiquid Assets.
The transaction is subject to customary approvals from competition authorities and is expected to be completed later this year.
About Hydro REIN
Hydro REIN was established in 2021 as part of Hydro’s strategy to grow in renewables. The company aims at becoming the preferred supplier of renewable power and other energy solutions for industrial clients.
Hydro REIN has a significant pipeline of wind and solar projects in Brazil and the Nordics for long-term power supply to Hydro and other industrial offtakers. Hydro REIN is also developing a range of energy solutions to assist industries with the management and optimization of its energy consumption and storage behind-the-meter.
Head of Investor Relations
Head of External and Internal Communication, Group Communication
SOURCE: Norsk Hydro ASA